OREANDA-NEWS. December 27, 2013. Prime Minister of Ukraine Mykola Azarov has held a videoconference "Ukrainian industry: realities and prospects". The event was also attended by Vice Prime Minister of Ukraine Olexandr Vilkul and vice Prime Minister Yuriy Boyko. In direct connection with the Kyiv were representatives of large industrial enterprises of Kharkov, Zaporizhya, Sumy and Kirovograd regions

In particular, heads of such enterprises as: Turboatom OJSC, Motor Sich JSC, Sumykhimprom PSC, Chervona Zirka PSC, FED Corporation, PJSC “Sumy Frunze NPO”, ZAZ Company, Yuzhcable works PJSC, “Zaporizhstal” Steel Works, group of companies Hydrosila and other also jointed to the videoconference. Overall, the meeting was represented by companies of all strategic sectors of Ukrainian economy: engineering, aerospace construction, instrumentation, metallurgy, chemical industry, nuclear energy, agriculture and food industry.

Participants of the videoconference have talked the creation of incentives to modernize and improve the quality of domestic products as well as prospects of development of industry cooperation with the RF and the CIS Member States.

The Prime Mykola Azarov noted that the overcoming the negative trends in industrial production observed during 2013 is impossible without the recovery and further intensification of cooperation with Russia and the involvement of additional credit recourses on reasonable terms for Ukraine. For most companies, whose representatives took part in today's videoconference, it is an objective necessity, because from 40% to 90% of their export oriented on CIS markets. Limitation of Ukrainian export with Russia caused a negative balance in the amount of \\$ 7 billion in bilateral trade for 9 months of 2013. In total the turnover with Russia for the year fell by 20%, with CIS Member States by 10%, with the EU by 10%.

"These are our major partners, and, of course, such fall in turnover, certainly, creates an extremely hostile environment for changes in the country, modernization economy and infrastructure," Mykola Azarov stressed.

So, in that situation Ukraine was urgently needed to address the issue of normalization of trade and economic relations with Russia and the CIS countries. The outcome of negotiations between the President of Ukraine Viktor Yanukovych and his Russian counterpart Vladimir Putin in Moscow on December 17 was the signing of a number of trade agreements and agreements on the development of industrial cooperation between the two countries. Finally, the issue of gas prices was successfully resolved for Ukraine. Also, on the insistence of the Ukrainian party heads of states agreed about the normal functioning of the FTA within the CIS. "Agreements that have been achieved with Russia, of course, offer us a great opportunity to realize all our plans," the head of the Ukrainian Government said.

Reached agreements allow Ukrainian industry to adopt a realistic production program for next year, get a load of production guarantees and guarantees of saving of jobs. The revival of economic activity also contribute to the realization of system modernization programs of industrial production and the transition to a more modern and secure technologies.

Systematic steps will facilitate of activation of economic development in 2014, which were also discussed during the videoconference. Among them:

creation of purchase orders on the domestic market, especially for aviation and engineering,

restoring high rates of infrastructure construction to create demand for products of iron and steel industry;

approval of state target scientific and technical programs of development of aeronautical engineering, aircraft engineering, automobile manufacturing;

involvement of additional investment through leasing mechanism;

introduction of tax incentives and, in particular, exemption from the income tax of enterprises that reinvest in the development of production;

providing of the state support to production and exports by improving credit conditions of Ukrainian producers;

settlement of tender procedures;

limit of dumped imports and stimulation of domestic demand;

new forms of public-private partnerships, etc..

Ukrainian industrialists during the videoconference expressed the support for the actions of the Government and the President.

The Prime Minister said that today's meeting begins a dialogue with representatives of the industry: "Today we’ve had the first, but I hope not the last meeting. Today we’ve talked with representatives of the four regions and such meetings will be held with the participation of other regions in the future. It is important to know the thought on the government’s actions," Mykola Azarov said.